MartinCej

Nortel Networks, Canada's largest company by market value, slumped alongside U.S. equities. Up to two-thirds of trading in Nortel shares takes place in the U.S. Fuel cell maker Ballard Power Systems and electronic components company Celestica also fell.

Oil and gas stocks rose, underscoring investors' confidence that demand for energy will remain high through the winter heating season and commodity prices are unlikely to slide much anytime soon.

Declining issues outnumbered rising stocks by 394 to 371 and 204 issues were unchanged as some 37 million shares changed hands in midday trade.

The Canadian Venture Exchange Index, a measure of small technology, oil and gas and biotechnology stocks trading on the Canadian Venture Exchange, fell 0.4 percent. The Nasdaq Canada Index rose 1.6 percent, led by Delano Technology
DTEC, -1.42%

Oil and gas companies resisted the slide as many investors took money out of technology stocks and piled it into shares of companies with visible earnings and a strong likelihood of robust profit growth in coming quarters. Among the large integrated oil and gas companies, Imperial Oil (IMO) added 10 cents to C$37.15 and Husky Energy (HSE) gained 20 cents to C$14.95. Rio Alto Exploration (RAX), whose operations are directed more towards natural gas, rose C$1.05 to C$30.70.

Analyst Frederick Schultz at Raymond James & Associates anticipates natural gas prices will hover around current highs for the next 24 months.

"The futures market and most analysts expect this will be a short-term problem that will self-correct fairly quickly," Schultz said in a research note to clients. "We think otherwise."

"For 20 years there has been an energy supply bubble that has finally been eaten away by increasing demand and dwindling energy infrastructure re-investment," Schultz argued. "This 20-year trend will not be fixed in one year."

Berkley Petroleum (BKP), which is fighting off a hostile takeover by Hunt Oil of Huston, Texas, slipped 5 cents to C$11.35. Hunt bid C$10 a share for Berkley in late December.

Berkley opened its books Monday, highlighting its gas producing properties and reserves in an attempt to attract a higher bidder. See full story.

Intraday Data provided by SIX Financial Information and subject to terms of use. Historical and current end-of-day data provided by SIX Financial Information. All quotes are in local exchange time. Real-time last sale data for U.S. stock quotes reflect trades reported through Nasdaq only. Intraday data delayed at least 15 minutes or per exchange requirements.